[Reproduced below are two write-ups by the same author - the former one is published today, Dec. 15 2014, and the latter (earlier) one was published back on December 10, 2008.
The latest report indicates: "The two new Russian-design VVER-1000 reactor units (KKNPP 3 & 4) to be set up in Tamil Nadu ... entail a sanctioned project cost of Rs 39,849 [i.e. approximately 40,000] crore." This works out as Rs. 20,000 crore per reactor. Compare this with the earlier report (at sl. no. II below): "Russia has offered a sweetener in the form of a 30 per cent discount on the $2-billion price tag for each of its new nuclear reactors under discussions for sale to India." $2-billion at the current exchange rate of around Rs. 62.75 / $ works out to Rs. 12,550 crore. With 30% discount, it comes down to Rs 8,785 crore (approx.). So, the reported price per unit of reactors in rupee terms, at the current exchange rate, has risen phenomenally to Rs. 20,000 crore from Rs 8,785 crore (also calculated at the same current exchange rate) reportedly offered almost exactly six years back. That's an increase of more than 125% - more than double. Of course, back then there was no Liability Act. Nevertheless it's a phenomenal rise. (If we calculate in terms of $, the price per reactor has risen from $1.4 billion per reactor, six years back, to $3.2 billion (approx.) - a rise of slightly more than 125%.) That's quite striking, to put it rather mildly. (For the performance record of the VVER-1000 reactor (unit I) in Koodankulam, which had attained criticality on July 15 2013 and was connected to the grid on Oct 22 that year, see: <https://groups.yahoo.com/neo/groups/india-unity/conversations/messages/55183>.] I/II. http://www.thehindubusinessline.com/todays-paper/russia-offers-discount-on-new-nreactors-fuel-for-existing-plants/article1643460.ece 2 new Russian reactors for Kudankulam to cost double, most expensive n-plants Written by Anil Sasi | New Delhi | Posted: December 15, 2014 5:22 am The first set of twin reactors that are part of the 12 reactor units that Russia has undertaken to supply to India will be the most expensive nuclear power units to be set up in the country so far. ***The two new Russian-design VVER-1000 reactor units (KKNPP 3 & 4) to be set up in Tamil Nadu, which would come up at the Kudankulam site where two identical units (KKNPP 1 & 2) are nearing commissioning, entail a sanctioned project cost of Rs 39,849 crore*** [emphasis added]. This would translate into a cost of nearly Rs 20 crore per MWe (mega watt electric) as against the established benchmark of project cost of Rs 7-10 crore per MWe for existing nuclear projects based largely on the indigenous PHWR (pressurised heavy water reactor) technology. The comparative cost of setting up a supercritical-technology based thermal power project is around Rs 6 crore per mega watt. The final cost of the new Russian LWR (light water reactor) units, for which state-owned Nuclear Power Corp (NPCIL) is in negotiations with Russian reactor vendor Atomstroyexport, could go up further, depending on the resolution of the uncertainties over the Civil Liability Nuclear Damage Act, 2010. The government has taken up the matter of developing an appropriate insurance product to cover the liability under the provisions of the Act, which was enacted with the aim of tying down foreign suppliers to a liability regime but is now being perceived as having created unlimited liability -- both in time and costs -- for vendors. The contentious clauses in the law include 17 (b) ,which says the operator (NPCIL) has the right to recourse against suppliers in case of a nuclear accident, and clause 46, which says the suppliers can be sued under any other Indian law as well as by citizens at large. According to official sources privy to the discussions on the nuclear collaboration in the run-up to Russian President Vladimir Putin's visit, the Russian side has indicated that its state-owned nuclear utility Rosatom is open to shortlisting three-four Indian equipment vendors for future nuclear power projects being jointly planned in India. The focus is on moving to a serial construction model, starting with localising mechanical engineering production to produce components and equipment in India in order to avoid time and cost overruns, as experienced with the first couple of units of the Kudankulam project. At the Kudankulam site, where the two Russian-designed VVER-1000 series reactors are being installed, 100 Russian companies and organisations are involved in documentation, supply of equipment and controlling construction and equipping process. This has been cited as one of the reasons for the delays and localisation is being considered for quicker project execution at cheaper costs. While the Indian nuclear liability legislation had been seen as a stumbling block for the negotiations for new project sites, the "roadmap" for development of cooperation in the area of civilian nuclear energy signed by India and Russia envisages at least one more site to be earmarked for the Russians, where a minimum of six units could be built. This, sources said, gives Russians the confidence to start serial production here as and when the liability hurdle is cleared. As compared to the sanctioned cost of Rs 39,849 crore estimated for the twin Russian units (KKNPP 3&4), the sanctioned cost of a Greenfield project in Haryana based on the domestic PHWR-technology -- the 2×700 MWe Gorakhpur Haryana Anu Vidyut Pariyojana-1&2 -- is about half of the cost of the Russian LWR-technology based project at Rs 20,594 crore. It needs to be noted that the capacity of the indigenous reactors at 1400MWe is about 66 per cent of the 2000MWe capacity of KKNPP 3 & 4. The two new Kudankulam units -- KKNPP-3 & 4 -- are expected to be ready for commercial operations by the year 2020-21. Currently, for the existing set of 20 reactors in operation in the country, the maximum per unit (kWh) tariff is Rs.3.41 per unit (including fixed and energy charges). The first set of Russian VVER reactor-based projects set up in the country at Kudankulam -- KKNPP 1 & 2 -- has a sanctioned cost of Rs 17,270 crore, which is up for revision currently. The first 1,000 MWe unit of KKNPP, which was close to commissioning [***this had in fact been commissioned back in 2013 and is now under unplanned shutdown (or breakdown) since Sept. 25 this year - look up <https://groups.yahoo.com/neo/groups/india-unity/conversations/messages/55183>, for details***] but had to be shut down due to a technical issue with the turbine, is almost ready while the second VVER-1000 light water reactor is in advanced stages of commissioning. II. http://www.thehindubusinessline.com/todays-paper/russia-offers-discount-on-new-nreactors-fuel-for-existing-plants/article1643460.ece Russia offers discount on new N-reactors, fuel for existing plants India considering 2 more units at Koodankulam. Nuclear play Russia is offering 30 per cent discount on the $2-billion price tag for each of its new nuclear reactors Much of the equipment and components for the reactors are proposed to be manufactured in India Anil Sasi New Delhi, Dec. 9 ***Russia has offered a sweetener in the form of a 30 per cent discount on the $2-billion price tag for each of its *new* nuclear reactors under discussions for sale to India*** [emphasis added]. Besides, the Russians are open to deputing its nuclear fuel firm, TVEL Corporation, to deliver uranium not just to the Russian-built stations, but for existing heavy-water units in the country as well, including the Tarapur station, according to Government sources. India, on the other hand, has promised the Russians an increased role in the sector. Over and above the agreement signed for four additional reactors at Koodankulam, where two reactors are already under construction, talks have been initiated for building a seventh and eighth reactor units through Russian assistance at the same site. The Russians are also lobbying hard for earmarking at least one more new site, other than Koodankulam, for setting up Russian design reactors. Even as the price of each reactor is $2 billion, the Russians have offered the discount based on plans to start serial production of reactors for the Indian nuclear industry. Much of the equipment and components are proposed to be manufactured in India, thereby bringing down costs. After factoring in the discount, the cost of construction for a mega watt (MW) for each new reactor comes to roughly Rs. 7 crore (at current exchange rates). In the case of first two 'VVER-1000' units that are currently under construction at Koodankulam, the total construction cost was estimated at $2.6 billion. At current exchange rates, it translates to around Rs. 6.5 crore/ MW. The Russian Government had provided India with a long-term credit, which covers almost half of the cost of the first two units. NPCIL expects the first Koodankulam unit, when operational, to be able to sell power at less than Rs. 2.50 a unit (kilowatt hour). Pacts signed Russia and India had, last Friday, signed an inter-governmental agreement for cooperation on the construction of four additional reactors at Koodankulam. They also signed a protocol on fuel supplies, with TVEL agreeing to deliver fuel worth $700 million to India. These deals include an assurance of uranium supplies for a number of existing Pressurised Heavy Water Reactors, including uranium dioxide pellets for the Tarapur station. (This article was published in the Business Line print edition dated December 10, 2008) -- Peace Is Doable -- You received this message because you are subscribed to the Google Groups "Green Youth Movement" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send an email to [email protected]. Visit this group at http://groups.google.com/group/greenyouth. For more options, visit https://groups.google.com/d/optout.
